03-26-2013 07:25 AM - edited 03-26-2013 04:48 PM
There were some interesting trades today, ahead of Thursday's USDA Reports. What happened and what do they mean?
At the close:
The May futures corn contract closed 3 cents lower at $7.30.The May soybean futures contract ended 10 cents higher at $14.47. May wheat futures closed 4 cents higher at $7.31 per bushel.
One analyst puts today's market action like this: "It's turn around Tuesday to start.yesterday corn was up 8 cents so today we're lower on profit-taking. Beans were down yesterday so today were up on profit taking. For this Thursday, most expect slightly negative planted acreage numbers as they all come in marginally higher than the year prior but bullish quarterly stocks numbers and even a slight drop under estimates would be considered very bullish as it then comes off the next crop report ending stocks. Planting of corn in the southern delta is going quickly and getting timely rain for early emergence. The sub freezing temperatures in the winter wheat belt are surely going to cut crop ratings this week but warmer temps next week will again help the crop."
At mid-session, the May futures corn contract is trading 6 cents lower at $7.27.The May soybean futures contract is trading 5 cents higher at $14.42. May wheat futures are trading 2 cents lower at $7.25 per bushel. The May soymeal futures are trading $0.70 per short ton higher at $418.50. The May soyoil futures are trading $0.31 higher at $50.75.
In the outside markets, the NYMEX crude oil is $0.68 per barrel higher, the dollar is lower and the Dow Jones Industrials are 90 points higher.
At the open:
At the open, the May futures corn contract is trading 1 cent higher at $7.27.The May soybean futures contract is trading 7 cents lower at $14.33. May wheat futures are trading 4 cents lower at $7.25 per bushel. The May soymeal futures are trading $2.70 per short ton lower at $416.60. The May soyoil futures are trading $0.04 lower at $50.39.
In the outside markets, the NYMEX crude oil is $1.87 per barrel higher, the dollar is higher and the Dow Jones Industrials are 28 points lower.
Early calls: Corn is seen 1-2 cents lower, soybeans 1-2 cents higher, and wheat 1-2 cents higher.
Overnight grain, soybean markets=Trading mostly higher.
Crude Oil=$0.58per barrel higher.
Wall Street=Seen opening higher.
World=Asia/Pacific stocks were higher and Europe's stocks were lower.
More in a minute,
03-26-2013 01:44 PM
Government authorities in Brazil have decided that the transportation of grains should be scheduled to avoid the huge lines in the ports of Santos and Paranaguá. The soybean harvest in the country is over 50 percent currently. It is almost over in Mato Grosso and 20 percent in Rio Grande do Sul.
On Sunday, Veja magazine, the largest magazine in Brazil by circulation, brought some figures of the Center for Agricultural Research of the University of Sao Paulo about the competitiveness on transporting grains. According to them, the average cost of transporting soybeans from Mato Grosso to Santos is US$ 128, while American farmers pay US$ 38 from Iowa to New Orleans. The production costs in Mato Grosso average US$ 230, while in Iowa is US$ 197. The final revenue would be US$ 82 (Brazilians) against US$ 205 (American growers) for each soybean ton.
Do you guys think these figures are accurate?